Tag Archives: Sentosa

UOB’s non-performing housing loans hit 10-year high

UOB’s non-performing housing loans soared to 34.2 percent in Q2 2014, or its highest level since Q4 2004, reported the media.

The sharp spike surprised Maybank Kim Eng given the perception that UOB is one of Singapore’s more conservative home lenders, with only a slight year-to-date correction in Singapore’s house prices.

“We understand its NPLs were isolated to a group of borrowers who had invested in Turquoise, a high-end condominium project in Sentosa,” said Maybank in a report.

URA data showed that two units there changed hands in Q2 2014 at 45 percent discount to their launch prices.

The report noted that the transactions “stoked fears that it is a matter of time before default cases become widespread, undermining Singapore banks’ profitability that has been propped up by low charge-off rates.”

To ascertain sentiment on the Sentosa micromarket, Maybank examined recent transactions of non-landed properties there.

It found that there are nine condominium projects in Sentosa. The first four, launched during the nascent recovery of Singapore’s property market in 2004 to 2005, had an average selling price of below $1,600 psf, while the remaining five, which were launched later, were priced above $2,600 psf.

“In our view, the large losses at Turquoise can be partially explained by the project’s higher launch price,” said Maybank.

Notably, Turquoise’s launch price of $2,605 psf is about 75 percent higher than the average price at The Oceanfront ($1,360 psf) and The Coast ($1,592).

“These two were launched one year ahead of Turquoise. This could mean that higher-priced projects at Sentosa are at greater risk of a price correction,” said the report.

Private home prices in Singapore continue to fall in Q2: URA

URBAN Redevelopment Authority’s official private home price index fell one per cent in the second quarter of this year compared with the first quarter.

This is a smaller drop than the 1.3 per cent decline in the previous quarter. It is also the third straight quarter of price decline.

Giving a geographical split of non-landed private home prices, URA said prices in Core Central Region (CCR) fell 1.5 per cent in Q2, a bigger drop than the 1.1 per cent decline in Q1.

CCR covers the Downtown Core planning area, Sentosa and the traditional districts 9, 10 and 11.

In the city-fringe, or Rest of Central Region, prices eased 0.4 per cent, a smaller decline compared with the 3.3 per cent drop in Q1.

In suburban locations, or the Outside Central Region, prices decreased 0.9 per cent in Q2. In the first quarter, they had dipped 0.1 per cent.

Prices of landed properties fell 1.7 per cent in Q2, higher than the 0.7 per cent decline in the previous quarter.

Rentals of private residential properties fell by 0.6 per cent in Q2 – compared with the 0.7 per cent decline in Q1.

Developers launched 2,843 uncompleted private residential units (excluding executive condominiums or ECs) for sale in Q2 compared to 1,964 units in Q1. They sold 2,665 private homes in Q2 excluding ECs – an increase from the 1,744 units they sold in the first three months of this year.

No new EC units were launched for sale in Q2, but developers sold 154 EC units in Q2, compared to the 149 units sold in Q1.

There were 1,314 resale transactions in the April-June quarter of this year, up from 941 transactions in the first three months.

There were 139 subsale transactions in Q2 compared to 128 transactions in Q1.